Document 10571489
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Not a New Problem… At the turn of the 20th century, the paper industry wanted to expand but the obstacles they encountered which where… Uncertain wood supply Difficulty obtaining financing without a dedicated wood supply 2 How did they solve the problem? Purchased land to provide a dedicated supply Company logging camps, equipment and crews 3 Over Time… Entrepreneurs saw an opportunity to supply wood Development of contract logging Paper companies divested of land but kept long term supply agreements 4 History of Tree Source Solutions Catalyst Renewables purchased Lyonsdale Biomass in 2003 Catalyst is a development company that desired to pursue new development Catalyst found that potential partners and financiers did not understand the nature of supply for a forest products user TreeSource Solutions, LLC was created to bridge the gap 5 Lyonsdale Facility 6 Lyonsdale Biomass Combined Heat and Power: Lyonsdale Biomass is a 19 MW, wood-fired, combined heat and power generation facility located in Lyons Falls, New York, approximately 95 miles northeast of Syracuse Clean Energy: Uses whole tree chips and mill residues (e.g. mill chips) to generate electricity for customers in New York and steam for Burrows Paper Corporation Economic Development: Purchases $6 million annually in regional wood fuel supply and pays over $1 million annually in wages Additional Benefits: Creates 5 tons of wood ash per day as a by-product which is utilized by local farmers as a soil amendment and a liming substitute 7 History of Tree Source Solutions Catalyst Renewables purchased Lyonsdale Biomass in 2003 Catalyst is a development company that desired to pursue new development Catalyst found that potential partners and financiers did not understand the nature of supply for a forest products user TreeSource Solutions, LLC was created to bridge the gap 8 TreeSource’s plan is to bridge the biomass supply gap in the 21st century 9 Designated Energy Crop Move from research to commercial TreeSource planted 500 acres of hybrid willow in 2008 Adds control to supply chain 10 Growing Woody Biomass: The demand for biomass has created an opportunity to use farmland to grow energy crops such as willows Willow Biomass Production Cycle Site preparation Three years old after coppice Planting Harvest One year old after coppice Coppice First year growth Early spring after coppicing 11 Logger Generated Chips Chips delivered directly from the woods ….From stock piles …From round wood yard 12 TreeSource Will… Partner with loggers Provide tours of existing plants and operations Offer long term supply agreements Provide financing assistance Treat the logging community as a respected business partner Provide timely payment Emphasize biomass as a part of the operation, not the operation 13 Waste Wood Pallets Tree trimmings Tree service chips 14 TreeSource Will… Provide communities and tree services with convenient and cost effective disposal options Purchase processing and trucking equipment Utilize mill residuals including bark and soft wood chips Explore equipment options to capture more land clearing material 15 Land Owner Education 16 TreeSource Will… Provide landowner tours of : Biomass burning facilities Past biomass harvests Active biomass logging Outreach presentations such as the Cornell Cooperative Extension presentation Facilitate the biomass harvest by providing potential hravestor information 17 From this: 18 To this!!! 19 Challenges Going Forward 20 Willow High planting cost Weed control Marginal (wet) sites Logistics of harvesting Long term landowner relations 21 The Logging Community is Struggling Unsteady markets Expensive equipment Chipping doesn’t work for all business models Aging of the logging community Gap between the cost of production and the project’s ability to pay 22 Waste Wood Contamination in product Not part of the income stream 23 Landowners Nutrient cycling Tops to protect regeneration Concerns about residual damage Biomass harvest is not for every landowner or situation 24 Outlook Going Forward 25 Outlook… Every supply study shows enough volume Chipping fits mechanization Keeps waste out of landfills Meets Energy needs with local supply Need creative solutions Time and a few successes will pave the way for progress 26 Contact Information Mailing Address: TreeSource Solutions, LLC 120 Walton Street, Suite 200 Syracuse, New York 13202 Main Office: (315) 414-2010 Cell: (315) 323-4882 Fax: (315) 414-2009 Email: JSantamour@TreeSourceSolutions.com 27
